NVIDIA stock: fundamental analysis
Stocks · NVDA · Technology
NVIDIA Corporation operates as a data center scale AI infrastructure company in the United States, Taiwan, China, Hong Kong, Europe, and internationally. It operates through Compute & Networking, and Graphics segments. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 222.27 USD
- Market cap: 5.4T USD
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
ROE of 117.2%: it earns a high return on shareholders' money. An ROE this high is usually driven by debt or buybacks, not only by the business. Out of every 100 in sales, 63.7 end up as profit.
Financial health
It holds more cash than debt (net debt/EBITDA of -0.1x): a very comfortable position.
Growth
Revenue is growing 105.9% year on year: a solid pace. Earnings are up 127.8%.
Valuation
It trades at a P/E of 28.1, in line with the 28.1 median of the technology companies we track. On expected earnings the P/E falls to 14.2: the market expects profits to rise.
Dividend
Dividend yield of 0.5% (1.00 USD per share per year) with a payout ratio of 3.5%.
Tools
All metrics
| NVIDIA | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | 117.2% | 34.0% |
| ROA | 53.6% | 11.9% |
| Gross margin | 74.7% | 52.2% |
| Operating margin | 66.2% | 30.4% |
| Net margin | 63.7% | 27.6% |
| Financial health | ||
| Net debt/EBITDA | -0.1x | 0.7x |
| Debt/equity | 0.2x | 0.5x |
| Current ratio | 4.6x | 1.7x |
| Growth | ||
| Revenue growth | 105.9% | 35.2% |
| Earnings growth | 127.8% | 127.8% |
| Valuation | ||
| P/E ratio | 28.1x | 28.1x |
| Forward P/E | 14.2x | 19.9x |
| EV/EBITDA | 26.1x | 27.8x |
| Price/book | 23.4x | 10.9x |
| FCF yield | 0.8% | 1.4% |
| Dividend | ||
| Dividend yield | 0.5% | 0.6% |
| Payout ratio | 3.5% | 20.9% |
| Beta (volatility) | 2.2x | 1.3x |
Frequently asked questions
What is NVIDIA's P/E ratio?
NVIDIA's P/E is 28.1 based on trailing 12-month earnings and 14.2 on expected earnings. The median for its sector among the companies we track is 28.1. Data as of September 18, 2026.
What dividend does NVIDIA pay?
Dividend yield of 0.5% (1.00 USD per share per year) with a payout ratio of 3.5%.
Is NVIDIA stock expensive?
It trades at a P/E of 28.1, in line with the 28.1 median of the technology companies we track. On expected earnings the P/E falls to 14.2: the market expects profits to rise. This is an educational reading based on ratios, not a buy or sell recommendation.
Does NVIDIA have a lot of debt?
It holds more cash than debt (net debt/EBITDA of -0.1x): a very comfortable position.
What is NVIDIA's market cap?
NVIDIA has a market cap of 5.4T USD and its shares trade at 222.27 USD, with a 52-week range of 164.27 USD to 236.54 USD (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.